MIRA INFORM REPORT

Report Date :

15.03.2013

IDENTIFICATION DETAILS

Name :	D.A.JHAVERI BVBA
Registered Office :	Hoveniersstraat 30 2018 Antwerpen
Country :	Belgium
Financials (as on) :	31.03.2012
Date of Incorporation :	19.07.1999
Com. Reg. No.:	466604246
Legal Form :	Private Limited Company (BL/LX)
Line of Business :	Wholesale of diamonds and other precious stones
No. of Employees :	2

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30^th, 2012

Country Name	Previous Rating (31.03.2011)	Current Rating (30.06.2012)
Belgium	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

BELGIUM - ECONOMIC OVERVIEW

This modern, open, and private-enterprise-based economy has capitalized on its central geographic location, highly developed transport network, and diversified industrial and commercial base. Industry is concentrated mainly in the more heavily-populated region of Flanders in the north. With few natural resources, Belgium imports substantial quantities of raw materials and exports a large volume of manufactures, making its economy vulnerable to volatility in world markets. Roughly three-quarters of Belgium's trade is with other EU countries, and Belgium has benefited most from its proximity to Germany. In 2011 Belgian GDP grew by 2.0%, the unemployment rate decreased slightly to 7.7% from 8.3% the previous year, and the government reduced the budget deficit from a peak of 6% of GDP in 2009 to 4.2% in 2011. Despite the relative improvement in Belgium's budget deficit, public debt hovers near 100% of GDP, a factor that has contributed to investor perceptions that the country is increasingly vulnerable to spillover from the euro-zone crisis. Belgian banks were severely affected by the international financial crisis in 2008 with three major banks receiving capital injections from the government, and the nationalization of the Belgian arm of a Franco-Belgian bank. An ageing population and rising social expenditures are mid- to long-term challenges to public finances.

Source : CIA

Company name and address

Business number	466604246
Company name	D.A.JHAVERI BVBA
Address	HOVENIERSSTRAAT 30
	2018 ANTWERPEN
Number of staff	2
Date of establishment	19/07/1999
Telephone number	032321118
Fax number	032318697

Accounts & ratios

Date of latest accounts	Turnover	Profit Before Tax	Net worth	Working capital
31/03/2012	43,736,848	84,341	3,508,269	4,909,351
31/03/2011	56,509,155	110,299	3,450,926	4,805,629
31/03/2010	57,523,305	82,558	3,375,816	4,830,077

Accounts & ratios

Date of latest accounts	Balance Total	Number of Employees	Capital	Cashflow
31/03/2012	20,940,986	2	3,015,374	83,060
31/03/2011	19,620,483	1	3,015,374	111,803
31/03/2010	19,808,622	1	3,015,374	99,225

Trends

Profitability
Liquidity
Net worth

Payment expectations

Past payments		Payment expectation days	57.40
Industry average payment expectation days	176.14	Industry average day sales outstanding	109.67
Day sales outstanding	153.78

Court data summary

Bankruptcy details
Court action type	no
Protested bills
Bill amount	-
NSSO details
Date of summons	-

Business number	466604246	Company name	D.A.JHAVERI BVBA
Fax number	032318697	Date founded	19/07/1999
Company status	active	Company type	Private Limited Company (BL/LX)
Currency	Euro (€)	Date of latest accounts	31/03/2012
Activity code	46761	liable for VAT	yes
Activity description	Wholesale of diamonds and other precious stones	VAT Number	BE.0466.604.246
Belgian Bullettin of Acts Publications	moniteur belge

Joint Industrial Committee (JIC)

JIC Code	218
Description	Additional national joint committee for the employees
category

JIC Code	324
Description	Joint committee for the industry and the trade in diamant
category

Export accounts to CSV file

comparison mode

average

median

Profit & loss

Annual accounts	31-03-2012	%	31-03-2011	%	31-03-2010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Turnover	43,736,848	-22.60	56,509,155	-1.76	57,523,305	52,550,489	-16.77
Total operating expenses	43,173,569	-22.78	55,906,809	-1.88	56,978,767	51,939,054	-16.88
Operating result	563,278	-6.49	602,346	10.62	544,538	390,146	44.38
Total financial income	282	50.93	187	86.82	100	133,068	-99
Total financial expenses	479,219	-2.64	492,234	6.53	462,080	345,275	38.79
Results on ordinary operations before taxation	84,341	-23.53	110,299	33.60	82,558	167,912	-49.77
Taxation	22,150	-36.50	34,882	46.76	23,769	64,493	-65.66
Results on ordinary operations after taxation	62,191	-17.54	75,417	28.28	58,790	120,111	-48.22
Extraordinary items	-4,849	-1483	-306	-113	2,254	-3,241	-49.61
Other appropriations	0.00	-	0.00	-	0.00	-	-
Net result	57,342	-23.66	75,111	23.04	61,044	116,870	-50.93
other information
Dividends	-	-	-	-	-	0	-
Director remuneration	-	-	-	-	85,018	98,780	-
Employee costs	59,824	23.08	48,604	-3.82	50,533	247,255	-75.80
Wages and salary	46,748	25.04	37,386	-3.45	38,723	211,437	-77.89
Employee pension costs	-	-	-	-	-	0	-
Social security contributions	9,476	30.17	7,279	-4.20	7,598	46,831	-79.77
Other employee costs	3,601	-8.58	3,939	-6.46	4,211	8,552	-57.90
Amortization and depreciation	25,718	-29.91	36,692	-3.90	38,181	31,590	-18.59

balance sheet

Annual accounts	31-03-2012	%	31-03-2011	%	31-03-2010	Industry average 2012	%
Weeks	52		52		52
Currency	EUR		EUR		EUR
Intangible fixed assets	0	-	0	-	0	5,869	-100
Tangible fixed assets	262,899	-11.43	296,835	-9.89	329,423	352,051	-25.32
Land & building	218,275	-3.26	225,629	-3.16	232,984	753,305	-71.02
Plant & machinery	19,393	-29.92	27,675	-23.27	36,068	36,975	-47.55
Other tangible assets	25,231	-42.04	43,531	-27.90	60,371	43,634	-42.18
Financial fixed assets	1,766	0	1,766	0	1,766	36,183	-95.12
Total fixed assets	264,665	-11.36	298,601	-9.84	331,189	370,924	-28.65
Inventories	2,153,443	43.97	1,495,746	-64.79	4,247,997	3,948,436	-45.46
Raw materials & consumables	-	-	-	-	-	-	-
Work in progress	0	-	0	-	0	0	-
Finished goods	2,153,443	43.97	1,495,746	-64.79	4,247,997	2,785,537	-22.69
Other stocks	0	-	0	-	0	466,116	-100
Trade debtors	18,426,915	6.84	17,247,045	13.63	15,178,539	10,344,551	78.13
Cash	9,697	-98.13	519,904	4628	10,994	433,431	-97.76
other amounts receivable	51,165	59.37	32,105	567	4,811	227,852	-77.54
Miscellaneous current assets	35,101	29.61	27,083	-22.82	35,091	10,302	240
Total current assets	20,676,321	7.01	19,321,882	-0.80	19,477,433	14,267,789	44.92
current liabilities
Trade creditors	6,789,412	35.57	5,008,152	-30.03	7,157,211	5,209,064	30.34
Short term group loans	-	-	-	-	-	-	-
Other short term loans	8,920,551	-5.54	9,444,189	26.62	7,458,482	4,954,643	80.04
Miscellaneous current liabilities	57,007	-10.80	63,912	101	31,662	-91.37	- -
Total current liabilities	15,766,970	8.62	14,516,253	-0.90	14,647,355	10,640,269	48.18
Long term debts
Long term group loans	-	-	-	-	-	-	- -
Other long term loans	55,983	-44.66	101,154	-32.32	149,470	-97.09	- -
Other long term liabilities	1,609,763	3.71	1,552,149	-5.12	1,635,981	248,853	546
Total long term debts	1,665,747	0.75	1,653,304	-7.40	1,785,451	1,222,840	36.22
shareholders equity
Issued share capital	3,015,374	0	3,015,374	0	3,015,374	1,919,217	57.11
Share premium account	-	-	-	-	-	139,492	-
Reserves	492,894	13.17	435,552	20.84	360,441	687,600	-28.32
Revaluation reserve	-	-	-	-	-	1,664,632	-
Total shareholders equity	3,508,269	1.66	3,450,926	2.22	3,375,816	2,727,603	28.62
Working capital	4,909,351	2.16	4,805,629	-0.51	4,830,077	3,627,520	35.34
Cashflow	83,060	-25.71	111,803	12.68	99,225	144,744	-42.62
Net worth	3,508,269	1.66	3,450,926	2.22	3,375,816	2,721,734	28.90

ratio analysis

Annual accounts	31-03-2012	change(%)	31-03-2011	change(%)	31-03-2010	Industry average 2012	%
Trading performance
Profit Before Tax	0.19	-5.00	0.20	42.86	0.14	1,00	-81.00
Return on capital employed	1.63	-24.54	2.16	35.00	1.60	15,00	-89.13
Return on total assets employed	0.40	-28.57	0.56	33.33	0.42	-2,00	20.00
Return on net assets employed	2.40	-25.00	3.20	30.61	2.45	20,00	-88.00
Sales / net working capital	8.91	-24.23	11.76	-1.26	11.91	39,00	-99
Stock turnover ratio	4.92	85.66	2.65	-64.09	7.38	19,00	-74.11
Debtor days	153.78	38.04	111.40	15.67	96.31	124,00	24.02
Creditor days	57.40	75.54	32.70	-28.68	45.85	84,00	-31.67
short term stability
Current ratio	1.31	-1.50	1.33	0	1.33	5,00	-81.29
Liquidity ratio / acid ratio	1.17	-4.88	1.23	18.27	1.04	4,00	-70.75
Current debt ratio	4.49	6.65	4.21	-3.00	4.34	7,00	-35.86
Liquidity ratio reprocessed	-	-	-	-	-	-	-
long term stability
Gearing	255.87	-7.49	276.60	22.73	225.37	198,00	29.23
Equity in percentage	16.75	-4.78	17.59	3.23	17.04	10,00	67.50
Total debt ratio	4.97	5.97	4.69	-3.70	4.87	7,00	-29.00

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
industry average credit rating	64.48
Industry average credit limit	140177.31

Payment expectations

Payment expectation days	57.40
Day sales outstanding	153.78

Industry comparison

Activity code	46761
Activity description	Wholesale of diamonds and other precious stones
Industry average payment expectation days	176.14
Industry average day sales outstanding	109.67

Industry quartile analysis

Payment expectations
Company result	57.40
Lower	121.46
Median	73.03
Upper	41.43
Day sales outstanding
Company result	153.78
Lower	106.41
Median	54.84
Upper	24.41

Summary

Group - Number of Companies	0
Linkages - Number of Companies	0
Number of Countries	0

Group Structure

No group structure for this company.

Minority Shareholders

No minority shareholders found

Minority Interests

No minority interests found

NSSO details

Business number	466604246
Name of defendant	-
Legal form of defendant	-
Date of summons	-
Labour court	-

Bankruptcy details

There is no bankruptcy data against this company

court data

there is no data for this company

Current director details

Name	SHALIN JHAVERI
Position	Principal Manager
Start Date	05/10/2012
Street	2 VAN EYCKLEI ANTWERPEN
Post code	2018
Country	Belgium

Former director details

Name	HARSHIL DHARNIK JHAVERI
Position	Principal Manager
Start Date	01/07/2006
End Date	31/12/2007
Street	2 LANGE LEEMSTRAAT ANTWERPEN
Post code	2018
Country	Belgium
Name	SANAT ARVINDBHAI JHAVERI
Position	Principal Manager
Start Date	19/07/1999
End Date	31/12/2010
Street	2 LANGE LEEMSTRAAT ANTWERPEN
Post code	2018
Country	Belgium

Name	CHIRAG KOTHARI
Position	Principal Manager
Start Date	13/10/2010
End Date	31/03/2011
Street	4 ANDREAS VESALIUSLAAN EDEGEM
Post code	2650
Country	Belgium

DIAMOND INDUSTRY – INDIA

- From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8^th Century B.C.  India, in fact, remained undisputed leader till 18^th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

- The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

- The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

- Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

- Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

- The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

- Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

- Excerpts from Times of India dated 30^th October 2010 is as under –

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

- Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.44
UK Pound	1	Rs.81.33
Euro	1	Rs.70.50

INFORMATION DETAILS

Report Prepared by :

PRL

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)